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QUESTION 3 REQUIRED Use the information given below to calculate each of the following independently 3.1 Expected total Marginal income and Net profit/loss. 3.2 Margin
QUESTION 3 REQUIRED Use the information given below to calculate each of the following independently 3.1 Expected total Marginal income and Net profit/loss. 3.2 Margin of safety (as a percentage). 3.3 Selling price per unit that will enable the company to break even. 3.4 Sales value required to achieve a net profit of R599 040. 3.5 Break-even value using the marginal income ratio, if the company spends an additional R87 040 on salaries. INFORMATION Umdloti Limited manufactures tables. The following information was extracted from the budget for the year ended 31 December 2020: 1. 2. 3. 4. 5. Expected production and sales (units) Selling price per table Variable manufacturing costs per table Variable Fixed manufacturine overheads Other costs: Sales commission per table Fixed administrative and marketing costs 1000 R1 200 R696 R216 960 R120 R144 000
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